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RESULTS TODAY,
RESULTS TOMORROW

Boost, Build & Transform

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Abstract

The unforeseen challenges in these times of pandemic have made organizations adjust their focus towards achieving swift results in the short-term. However, leadership cannot be short-sighted and therefore this short-term focus only works in anticipation that it acts as a catalyst for a lasting change in the future.

In this KnowBoT, the authors share EFESO’s unique ability to rapidly influence target results to keep them in line with business needs, while ensuring that the organization keeps progressing on solid sustainable foundations. This is done using the three approaches – Boost, Build and Transform, each blended to help organizations improve their results today, and securing their results for tomorrow.

The Boost progression is aimed at achieving quick results and laying the foundations for a continuous improvement culture, whereas the Build progression is more about building capabilities, transferring know-how to the teams and using WCOM™ methodology to achieve long term sustainable results. The Transform progression involves fundamentally changing the existing operating system, leveraging more from digital technologies and using the Boost and Build progressions in the operational excellence journey, to create what we call the Factory of the Future.

 

About the authors

 

Bas Koetsier

Vice President

Johann Ernst

International Expert – Transform Progression​

Michiel van den Boomen

Vice President – Boost Progression

Jörg Putzer

Senior Manager – Build Progression​

Schedule a call with our authors

 

Accelerating the Sustainable Progression

In this rapidly changing world, marred by the pandemic, it has become even more important to achieve results at a much higher speed than ever before. The sudden and swift change in market dynamics has prompted organizations to not just quickly adopt the digital and technological solutions, but also to make a step-change in their progression journey. An important differentiator between the leaders and laggards is the speed of progression, which can be aptly described as the speed at which the most relevant improvement opportunities are converted into tangible results. To truly accelerate their sustainable progression journey, organizations can look to choose between two suggested progression modes – Optimization and/or Transformation Mode. The choice is dependent on various factors such as the potential benefits, risks, resources, engagement levels, investments and time horizons.

 

Optimization Mode to Progression

Ensuring sustainable progression starts right at the beginning, when an organization determines the results to be achieved within a given framework. A Boost approach can make a quick impact on results and simultaneously ensure that the foundation is strong enough to Build on any of the continuous improvement methodologies such as WCOM™ , TPM, Lean, Six Sigma etc. The Boost approach is most appropriate when the company wants to make either a large-scale impact at multiple sites and address complex situations or if they have already made a futile attempt to make breakthrough improvements but are not achieving the desired results. Typically, these results are in terms of cost reduction, improved reliability, increased throughput, high quality or high delivery performance in supply chain.

The Boost progression will always eventually evolve into a Build progression that can ensure sustainable results in the long run. The Build progression is based on the very reliable, efficient and sustainable management system developed by EFESO Consulting, known as World Class Operations Management (WCOM™). This is a comprehensive approach of systematically eliminating losses to maximise efficiency and profitability in the end-to-end value chain. Results are achieved by the comprehensive implementation of methods and tools involving all employees through capability building and creating a culture of progression excellence.

 

The aim of both Boost and Build progression is to achieve results, the difference is in the speed and involvement of the key stakeholders. Boost focusses on performance progression to ensure results of today are achieved at a quick pace. Such an approach mostly requires additional support from an external expert because the internal teams may not be capable of handling a large number of improvement initiatives due to either lack of time or lack of skill or, in most cases, both.

It is easy to be fascinated by strategy-driven solution providers who can make a strong business case showing overwhelming savings potential but are then often incapable of converting strategy into real action on the Shopfloor. Similarly, simply making improvements on the Shopfloor without linking them to management objectives and strategy will not lead to sustainable progression.

 

Boost and Build Progression allows organizations to reap sustainable benefits within the existing operational framework.

 

Transformation Mode - Factory of the Future

Transform progression involves reorientation of the existing operational framework into a new global Operations Footprint to decide what is produced where; and the Design of an Operational Excellence framework, based on Boost and Build progression, to define how it is produced. But the key accelerator here is adoption of digital & technology that utilizes data and takes an organization to the next level of speed and efficiency, thereby creating Factory of the Future.

 

Industry 4.0 technology is imperative to build the factory of the future. The full potential of data utilization can be unleashed through the horizontal integration of systems across the value chain; and vertical integration of systems from Enterprise Resource Planning (ERP) down to machine level, creating real-time transparency and providing real-time decision support throughout the organization. The best use of this data is facilitated through IT services and applications such as AI, machine & deep learning, advanced analytics for predictive and prescriptive intervention, block chains, robot process automation etc.

The prerequisite is installing the best possible IT and IIoT infrastructure that digitalises all the data generated in the factory, whether on paper, or Excel or coming from machines. Sensors, ID Tags & Indoor Localization, Cloud computing, Enterprise IT systems, 5G wireless connectivity etc. are all part of this infrastructure that builds the foundation for a connected factory. The final element that completes the concept of a future factory is installation of smart manufacturing technologies. These are physical entities such as Robotics, Automated Guided Vehicles (AGVs), connected machines & tools, drones, Augmented & VR, smart wearables etc., all of which can really accelerate the productivity, quality and cost benefits for an organization.

 

Converting Strategy into Action

Results of Today - Boost Progression

BOOST progression is focussed on the main cost drivers, rapidly adapting target results that are in sync with management expectations and the business needs. It involves intense support by the EFESO team to gain fast results, systematically achieved in two phases – Diagnosis and Implementation.

Diagnosis Phase – It is a very intensive and concentrated effort to rapidly assess plant performance both operationally and financially. The targets are ambitious, yet realistic and are always set together with the plant management team and the key stakeholders. The teams comprise people from top management to the supervisor level on the Shopfloor, each having defined accountabilities for delivery and engagement. One of the key features of the diagnosis phase is to bring the teams together in a cohesive manner. Bootcamp is a great way to get the team fully up to speed for a vertical start-up. It involves discussions on project planning, current situations, specific tools training and team building. This phase concludes with validation of the key findings from the analyses and, on that basis, design of the progression plan. Despite being a very structured approach, a company diagnosis is always adapted to suit local needs and EFESO does not use a “one size fits all” approach.

Implementation Phase – The implementation or results phase is a continuous loop of prepare-execute-sustain activities all executed within 8–12 week timeframe. The teams prepare by confirming targets, defining their steps to milestone planning (STMP) and undergoing quick training to deliver the Boost cycle projects. The core of Boost execution is about strictly following all STMPs, keeping pace and closely monitoring results complimented through effective project management system. To sustain Boost and all the improvements, it is necessary to have a final steering committee where the report-out and recapped milestones are discussed, the remaining ongoing actions are handed over to the organisation and successes are celebrated.

At the end of Boost progression, organizations are able to get impactful results, a strong PCS system, a robust data collection system, standardization of processes and a culture of continuous improvement, ready to evolve into a Build progression.

Results of Tomorrow - Build Progression

Build Progression is about achieving results in phases; through the continuous transfer of knowledge and developing capabilities. It requires a subtle approach of gradually building towards a sustainable organization that can realize target results in the medium to long term. It is a structured approach that integrates different elements of P-H-D. Process managed through Pillars, loss reduction routes etc.; Human Dynamics supporting Anchoring, Adoption and Activation by effective and inspiring leadership; and DigiTech solutions to support processes and unlock further improvement potential by integrating maturity level progression as part of the operational excellence journey.

Build progression operates at 3-levels:

Loss Intelligence – The starting point is to identify all the important Key Performance Indicators (KPIs) that impact the business targets. These KPIs are put through loss intelligence tools such as loss-cost deployment or the “Factory Model” and will create a pivot between business targets, KPIs and improvement projects with potential savings. The outcome is a clear business case that gives a single plant agenda and all business KPIs.

Loss Eradication – Once the losses have been identified and prioritized to create a single agenda master plan, the next step is to eradicate them. The focus is to systematically eliminate losses permanently and correspondingly develop teams’ capabilities on loss eradication methodologies. The most prominent approach is using the Plan-Do-Check-Act (PDCA) cycles with defined standards for all 4Ms – Man, Machine, Material and Methods. The chosen projects follow a dedicated loss reduction route that runs typically for 3-4 months. The routes are created to follow the PDCA cycle and focus on restoring basic conditions, improving current standards and eventually using innovation to eliminate chronic and potential problems. Team Boards are extensively used as part of Loss eradication phase, to help keep the team in absolute control of their projects.

Loss Prevention - The know-how developed during loss eradication forms the basis for sustainable loss prevention. The key elements contributing to this operational level include creation of Standards, launch of Pillars, implementation of a robust Performance Control System, introduction to Digital solutions and using Human Dynamics tools to support leadership, adoption and anchoring of people.

 

Future Proof Results - Transform Progression

At some stage in the business life cycle, an organization looks at making a strategic shift in the way they run their business. In most cases, new challenges are generated externally thus forcing the need for an overhaul of the existing operational framework. Transform progression, in the true sense, is a comprehensive reorientation of an organization encompassing its processes, people and data and spanning across the entire company, in all functions and locations. One of the key triggers for an organization to embark on Transform progression is the shifting of focus from silo-based local improvements in specific areas or topics to daring to optimize their global operations footprint as part of the Transform journey.

Global footprints comprise of various functions that must be developed individually but will follow a proven structure. An initial assessment helps to identify the possible gaps between the existing and desired footprint. These gaps open apparent opportunities to address various challenges pertaining to growth, competition, market & customer demands, operations strategy and even transparency. Addressing these opportunities demands focus on the core competencies and to decide what stays as part of the new network design and what can be eliminated or outsourced. The purpose is to ensure that each design configuration contributes to corporate strategy & growth, fulfil the customer & market requirements and result in cost reduction & improvement in earnings. Any opportunity to make quick gains can be realized through the Boost approach, during the design phase itself. The transformation mode culminates with creation of a transform business case and reactivation of the optimization mode, involving Boost and Build, to accelerate sustainable progression within the new processes and systems.

 

A company progressing faster than its clients and competitors is future proof by design.

 

At EFESO Consulting, we continuously learn and innovate our offerings with a clear motto of improving the Results of today, and securing the Results of tomorrow for our clients. This concept of Results2 is complimented through the Boost, Build and Transform approaches to ensure that every organization that partners with us, starts making sustainable progression from the very beginning.

In the final section we share some progression examples for all three approaches.

 

Results and key takeaways

In this section we share some key results achieved by EFESO through the Boost, Build and Transform approach at some of our client.

Building a Culture of Continuous Improvement through Boost Approach

The client is the world’s number 2 frozen potato company having six manufacturing facilities in three countries. The European plants wanted to gear up for the increasing demand and create a competitive advantage for themselves by significantly reducing the cost price whilst creating a more reliable process and increasing output.

Together with the client, EFESO designed an 8-month, per site, Boost programme set up over separate 8-week result-oriented waves. As per an important requirement of the Boost approach, the client freed-up a team of young potentials from different production sites to form a central improvement team, who would be leading the required changes in the future. The team went through a bootcamp to get acclimatized to methods and problem-solving tools, performance control system (PCS), improvement routes and human dynamics (HD) concepts. We then analysed the losses and together we created a detailed business case.

The key results achieved after an intense 8-month Boost program at two sites, which included installation of a robust PCS and governance structure, were as follows:

 

€4.5 million worth of realized savings for the two sites combined.

€6.5 million of planned annualized savings for the two sites.

OEE increase of 2.2% and 3.6% for Site-1 and Site-2 respectively.

Waste reduction of 55% and Over-usage down by 75% for Site-1.

21% reduction in waste and 32% reduction in Quality defects for Site-2.

Overall, >300 people were mobilized and directly trained in various improvement methods.

Journey of People Engagement and Systematic Loss Elimination leading to JIPM-TPM Certification

The client is a leading global brand of premium chocolates, with 12 manufacturing plants around the world, Sales of CHF4bn and a CAGR of over 7% in the last 20 years. The EFESO team had been engaged by the Swiss factory that exports 80% of its volume, that is 40.000 tons of chocolate, around the world per year and has a workforce of 600 employees. The plant was faced with issues of increased product complexity combined with highly volatile prices of raw ingredients amid growing demand. The EFESO team of experts designed and implemented a comprehensive Build program for the Swiss factory with a clear focus on productivity improvements and capacity gains, and eventually challenging for the JIPM-TPM Award.

The initial phase of the journey involved strengthening foundations such as 5S and visual management, accompanied by selected loss reduction projects to sensitise the teams on project methodology. Eventually the Pillars were launched, which are key to TPM journey. The key pillar chosen to deliver on strategy and key management indicators included – Safety, Focussed Improvement (FI), Autonomous Management (AM), Quality, Planned Maintenance (PM) and Education & Training (E&T).

The key results achieved at end of a 4-year journey of capability building were:

 

Average productivity increased by 20% and an OEE increase of 5%.

Reduction in overall material waste of 60%.

Overall production variance reduced by 90%.

Commendable increase in employee-morale and significant impact on skills was measured through a satisfaction survey.

The plant became the proud recipient of JIPM-TPM Award in 2018.

Overall, >300 people were mobilized and directly trained in various improvement methods.

Industry 4.0 Advanced Manufacturing Implementation Roadmap for a Pharma Giant

The client is a manufacturer of inhalation products, for the global market, having plants in UK, France and USA. All plants aimed to increase their productivity by over 10% per year. They had seen the benefits of Industry 4.0 within its existing operations network, and strongly believed that Digital transformation is main lever to achieve its growth target. They wanted to have an implementation roadmap for the complete plant network and chose EFESO to be its partner for the implementation process.

During the initial assessment, based on transform progression, the EFESO team identified and evaluated several Industry 4.0 initiatives on investment costs and savings, complexity, technical feasibility and implementation effort, that would help create a Smart Factory. A project prioritization and implementation roadmap were prepared for executing I4.0 projects in three waves, it also defined work packages, required resources and budget for the first wave. The key takeaways from the assessment included:

 

Identifying more than 50 Smart Factory projects with a positive business case.

Preparing an Implementation roadmap for these projects in three waves, including smart material flow automation, predictive maintenance & digital Shopfloor.

Identifying savings potential having a payback time of 1.4 years for the first wave.

 

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